Question: You are given: (1) Each risk has at most one claim each year. (11) Type of Risk Annual Claim Prior Probability Probability I 0.7 0.1

You are given: (1) Each risk has at most one claim each year. (11) Type of Risk Annual Claim Prior Probability Probability I 0.7 0.1 II 0.2 0.2 III 0.1 0.4 One randomly chosen risk has three claims during Years 1-6. Determine the posterior probability of a claim for this risk in Year 7. (A) 0.22 (B) 0.28 (C) 0.33 (D) 0.40 (E) 0.46

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

Not surprisingly, an event with the size and scale of Milan Expo drew its share of criticism. For example, on April 30, the day before Expo opened, thousands of protesters took to the streets in...

Question I: You are given: (i)Losses in a given year follow a Gamma distribution with parametersand, wheredoes not vary by policyholder. (ii)The prior distribution ofhas mean 50. (iii)The Buhlmann...

Please review my commentary on Financial statement analysis of two Universities in the South Pacific namely: University of the South Pacific and National University of Samoa. ok ok ok ok ok ok ok ok...

Help kindly An insurance company has three types of policyholders: Standard, Premium and Elite. If a Standard policyholder does not make a claim in a given year, they move to being a Premium...

PA 818 Professor Wallace Fall 2016 Homework #5 (Due Nov 9 and 10 in Sections) 1. Shoes Fight. A local newspaper, The Garlic, claims that an average area man owns fewer than 5 pairs of shoes. Your...

4. Using the demographic information given in Table A and your own experience and knowledge, characterize the segment of "high-frequency" user that Domino's would want to target. (02 marks) III....

This is a project for a tax class. The facts tab contains the 20 problems that need to be entered into the other tabs. Is this something you could help me with? I will tip nicely for good work. Elf...

Algorithms in Artificial Intelligence (or, the old name: Introduction to Algorithmic Decision Making) Part 1 Based on slides by David Sarne and Lirong Xia Course Tentative Schedule Introduction...

Using the information provided in the chapter background and gathered from the exercise on CS2-15, Complete the following: a. Perform a risk assessment of BUS?s growth-related change initiatives,...

Noah and Joan Arc live with their family in Dayton, OH. Noahs Social Security number is 434-11-3311. Noah was born on February 22, 1984, and Joan was born on July 1, 1985. Both enjoy good health and...

Problem 1: The economy has a representative consumer and a representative produer. A. The consumer's utility function is given by: 00 Ut = Bu(Ct+s) s=0 The consumer has an income in period r: Y =...

A retail chain is considering installing de-vices that resemble cameras to deter shoplifting. The devices only look like cameras, saving the expense of wiring and recording video. To test the benefit...

For the holidays, Michalis gave a watch worth $ 2 4 , 7 0 0 to Sobia and jewelry worth $ 4 2 , 5 0 0 to Natalie. Has Michalis made any taxable gifts this year and, if so , in what amounts? Assume...

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.